Today’s Milestone Millennials are young adults in their late 20s to mid 30s who are currently reaching major milestones in their lives—landing a job, starting families, and buying homes. They are the leading edge of the Millennial generation, born between 1980 and 2000, and they’re bringing with them a tsunami of purchasing power. A proprietary study by Accenture estimated that collectively, Millennials now spend $600 billion annually.
In five years, when the youngest of the Millennials begin reaching their life milestones, spending by Millennials is projected to reach an unprecedented $1.4 trillion (Donnelly & Scaff, 2013). A large percentage of this spending will likely be on considered-purchase items as this generation begins to fulfill their needs as new parents and homeowners. If retailers and brands want to ride the crest of this unparalleled spending wave, they need to have a digital presence that speaks to these “digital natives.”
Home Integration Spending
Millennials tech-driven purchasing behavior extends into the products theywant for their homes. Nearly 70 percent of Millennials want home technology—including audiovisual items—that integrates with their smartphones (PR/Newswire, 2014). They believe smart home technology helps them manage their daily lives more efficiently, and they want products such as energy-efficient washers and dryers that they can control remotely, with the touch of a button.
Millennials also like to share their technology experiences with others. A BHG survey of Millennial women found that 41 percent would be more likelyto show off a smart home automation system than a renovated kitchen (as cited in Perkins, 2013). The survey also revealed the influence that technology has on home purchasing behavior, with 64 percent of survey respondents viewing home technology as more important than curb appeal. Almost two-thirds of Millennial home buyers indicated that they would pass on a home if it didn’t have the latest technology, wiring, and capabilities. Knowing this, it should come as no surprise that this demographic represents a substantial pool of potential consumers for audiovisual integrators.
Engaging Millennial Shoppers
Millennial shoppers value happiness, passion, diversity, sharing, and discovery (Goldman Sachs, n.d.). Millennial parents, especially, will choose quality over price when it comes to their home appliances (Barkley, 2013).
According to a recent eBook titled “The Milestone Millennial,” (http://www2.netsertive.com/milestonemillennialebook) to provide the experience Milestone Millennials expect, you need a personalized marketing strategy that focuses on speaking to the values of Millennials via online channels. Millennials are among the most thoughtful of all generations when it comes to spending their money, often doing extensive research online before buying.
To reach them where they are, marketing strategies must leverage mobile for local purchasing, provide the ability to watch video across multiple devices, and lastly, emphasize socially responsible and quality products.
Do you feel confident that you can now take advantage of Millennial spending habits?
Tim McLain is the senior digital marketing specialist at Netsertive.